NextEra Energy, Inc. (NEE): A Bull Case Theory

Core Thesis - NextEra Energy, Inc. is positioned as a leading player in the U.S. utility and clean-power sector, demonstrating strong financial performance and growth potential [2][5]. Financial Performance - As of November 28th, NextEra Energy's share price was $86.29, with trailing and forward P/E ratios of 27.39 and 21.83 respectively [1]. - The company achieved a year-over-year adjusted EPS growth of 9.7%, reaching $1.13, supported by contributions from Florida Power & Light and NextEra Energy Resources [2]. Growth Outlook - Management has reaffirmed an adjusted EPS growth outlook of 6–8% through 2027, backed by strong credit metrics and a favorable regulatory environment [3]. - Florida Power & Light is expanding its rate base at approximately 8% annually while maintaining customer bills below the national average [3]. Operational Highlights - NextEra Energy Resources added 3 GW of renewables and storage in the recent quarter, increasing its backlog to nearly 29.6 GW [4]. - The company plans to restart the Duane Arnold nuclear facility under a 25-year PPA with Google, which is expected to enhance its ability to provide reliable, clean power [4][5]. Market Position and Valuation - Analysts have a bullish outlook on NextEra, with valuation estimates clustering in the mid-$90s to low-$100s per share based on various valuation frameworks [5]. - The potential restart of the Duane Arnold facility could contribute approximately $0.16 to annual EPS once operational, reinforcing NextEra's attractiveness to large-scale data center operators [5]. Risk Mitigation - The company has a robust buffer against risks such as backlog churn and permitting delays, supported by $37 billion in hedges and strong regulated cash flows [6]. - NextEra's diversified development pipeline and steady execution are expected to sustain its long-term growth and rerating potential [6].